Paul Nyakazeya, Group Digital Editor 
THE Zimbabwe Stock Exchange (ZSE)’s Small Cap Index gained 298 percent during the second quarter of 2021, driving the market’s returns to an inflation beating 38 percent.
Second quarter returns for the Top Ten and Top 15 indices were relatively tapered at 20,8 percent and 22,9 percent respectively, but remained aggressively ahead of official inflation and currency depreciation.
First Mutual Wealth (FMW), however, expects the market’s bull runs to be less pronounced in real terms for the balance of the year as its capitalisation is now ahead of historical averages.
“Notwithstanding the generally improved fundamental performance of listed companies as indicated from the first cycle of published results in 2021, we believe that a number of ZSE listed companies, particularly in the small and medium cap segment, may now be overvalued,” the wealth management firm said in a recent note.
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